Banking & Finance

July 6: VN-Index recovers to gain ground

Released at: 12:56, 06/07/2018 Stock Market Watch

Chart:vneconomy.vn

Index up slightly as trade concerns hit many regional markets.

by My Van

Despite trade tensions escalating to a new level, Vietnam’s stock market performed strongly on the morning of July 6 and the VN-Index closed at 908.04 points, up 0.96 per cent. The VN30-Index gained 1.06 per cent.

Momentum came from blue-chips after an early fall that saw the VN-Index lose 1.6 per cent and stand at 884.99 points. Banks and GAS and VNM then played a key role.

CTG led in banking, up 5.37 per cent, joined by BID, up 4.17 per cent, and VCB 2.12 per cent, which were the three biggest contributors to the VN-Index. TCB initially fell but recovered and closed 0.18 per cent higher. HDB increased 3.35 per cent, VPB 4.37 per cent, STB 3.4 per cent, and MBB 5.54 per cent.

GAS, after hitting its lowest level in seven months, closed 3.92 per cent higher, while VNM gained 1.88 per cent.

The HNX-Index increased 2.57 per cent on the back of ACB rising 7.02 per cent, SHB 4.23 per cent, and PVS 3.92 per cent. VCG lost 1.89 per cent, VGC 4.86 per cent, and VCS 0.6 per cent. The HNX30-Index closed 1.84 per cent higher.

Bid volumes were quite good during the session. The total matched volume increased 45 per cent compared to yesterday morning, reaching VND1.8 trillion ($78.1 million); the best morning in the last four days. The two exchanges, however, had only two stock codes with high matching orders: CTG with VND101.7 billion ($4.4 million) and ACB with VND144.4 billion ($6.2 million).

Foreigners are still selling. On HSX, total selling value was VND385 billion ($16.7 million) against buying of VND232.1 billion ($10.06 million).

The market rebounding was something of a surprise given the tension over tariffs between the US and China. In addition to the $34 billion worth of Chinese goods that are due to be levied with tariffs tomorrow, the US is expected to impose an additional $500 billion in tariffs.

Asian stock markets had a difficult morning, with Japan and South Korea bucking the trend in closing higher as Taiwan, China, Hong Kong and most Southeast Asian markets lost ground.